Once again, a large number of broker notes hit the wires last week. Some of these notes were positive and some were bearish.
Three sell ratings that caught my eye are summarised below. Here’s why top brokers think investors ought to sell these shares next week:
ASX Ltd (ASX: ASX)
According to a note out of Credit Suisse, its analysts have retained their underperform rating and $73.00 price target on this stock exchange operator. This follows the release of its trading data for the month of November. While ASX performed largely in line with expectations during the month, the broker continues to believe that its shares are expensive at the current level. Particularly given that it expects revenue growth will be hard to come by in FY 2021. The ASX share price ended the week at $74.89.
Fortescue Metals Group Limited (ASX: FMG)
Analysts at Morgan Stanley have retained their underweight rating but lifted the price target on this iron ore producer’s shares to $17.45. While the broker has upgraded its earnings forecasts for Fortescue over the coming years to reflect higher than expected iron ore prices, it isn’t enough for a change of rating. The broker doesn’t appear to see enough value in its shares at the current level and holds firm with its bearish stance. The Fortescue share price was changing hands for $22.95 on Friday.
Northern Star Resources Ltd (ASX: NST)
Another note out of Morgan Stanley reveals that its analysts have downgraded this gold miner’s shares to an underweight rating and cut the price target on them to $11.70. The broker isn’t expecting the gold price to do a great deal in 2021 and is forecasting it to remain in or around current levels. Morgan Stanley also believes that potential exploration success and improvements at its Pogo operation have already been factored into its share price. The Northern Star share price ended the week at $12.39.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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